Small Business Management Internal Signs Your Business is Growing Too Fast

By Leo Thomas

Is there such a thing as a business that is growing too quickly? Surprisingly, yes. Although growth is generally a ‘good thing’ and a strong sign that you are doing many things right, too much growth too soon may be detrimental to the overall health of your business.

Rapid growth is what all businesses aspire to, but unexpected rapid growth can take you by surprise and cause your business to suffer almost as much or sometimes even more than if it experienced no growth at all. As a business owner, being aware of the signs that your business is growing too fast for its own good is an important part of keeping the doors open for the long run. In this brief article I will just look at some of the ‘internal office indicators’ that can mean that your business might be expanding more rapidly than what is ideal.

Shrinking Office Space
Too many bodies equal not enough oxygen. A sure sign that your business has expanded beyond what you had planned is when your office space is becoming too small to accommodate your needs. While it is natural to plan on outgrowing your office space over time, if its five years before your lease is up and you have started converting bathrooms into offices, you may have a problem.

Too Many Temporary Employees
While contract labour and temporary employees is par for the course for many businesses, especially during the start-up years, if you become too dependent on a contract staff and temporary labour, you may be setting yourself up for disaster. Keep in mind that the temporary employees may be your clever way of saving a few pounds, when they leave your employment, they will take vital business knowledge with them – and you will be stuck with retraining a fresh crew of people. Opt instead to build up your staff as you need them, and to do your best to retain employees that understand your business from the inside out.

Low Employee Morale
Take a look at your employees and ask yourself if those individuals you depend on each day were actually recruited to do the amount of work and type of work they are doing now. With rapid growth often come added tasks and responsibilities that many of your employees didn’t plan on when they accepted the job. This leads to lower employee morale, which increases turnovers in what is likely the backbone of your profitability. Fewer employees trained to do a job can lead to a loss of productivity. Nip any problems that your employees have in the bud by fostering an environment of open communication and problem resolution.

As you have seen there are several ‘internal office indicators’ that may highlight that a business is growing too fast. If you are aware of these indicators, then you can deal with associated problems before they become too serious. As regards the employee issues, it is crucial that you communicate fully with them at all times and constantly assess their planned roles against their actual roles, making any necessary adjustments along the way.

Visit Accountants in Sheffield, a firm of accountants and business advisors specialising in small business. Find out how we can help your business grow.

Leave a Reply